Test 2 (chapters 6-9) STUDY GUIDE BA 351

Chapter 6

 Consumer buying behavior: decision processes of consumers who purchase products for
personal or household use and not for business purposes.
 Steps in consumer buying decision process. Slide 8, consideration set/ evoked sed
o Affected by situational, psychological, and social influences.
o Not all decision process led to a purchase, and not all consumer decision includes all five
stages
o Problem recognition
o Information search
 Internal: buyers search their memories for info about products
 External: buyers seek info from sources other than memories
o Evaluation of alternatives
o Purchase
o Post purchase evaluation, slide 5, situational
 Cognitive dissonance: buyers’ remorse
o Doubts in buyer’s mind about whether decision to buy a certain product was right
 Cause: purchase of expensive, high-involvement, product lacking desirable
features of competing brands
 Level of involvement: a person’s degree of interest in a product and the importance of the
product
o High-involvement products: visible to others and are expensive
o Low-involvement: less expensive and have less associated social risk
o Enduring involvement: long-term interest in a product or product category
o Situational involvement: temporary and dynamic and results from particular set of
circumstance
 Types of decision making:
o Routinized response behavior: buying frequently purchased, low-cost items that require
very little search and decision effort.
o Limited decision making: purchasing products occasionally from unfamiliar brands in a
familiar product category
o Extended decision making occurs with high involvement, unfamiliar, expensive or
infrequently purchased items.
o Impulsive buying: no conscious planning, stems from powerful urge to buy something
immediately., slide 12.
 Three steps of perception process 19,20,21
o Perception: process of selecting, organizing, and interpreting information inputs to
produce meaning.
o Selective exposure: process of selecting some sensory inputs and ignore others.
 Selective distortion: changing or twisting of info that is inconsistent with
personal feelings of beliefs.
  Selective retention: remembering info inputs that support personal feelings and
beliefs and forgetting inputs that do not.
o Perceptual organization: organizing and integrating new information with what is stored
in memory.
o Interpretation: assigning meaning to what has been organized
 Maslow’s hierarchy of needs: physiological needs, safety needs, social needs, esteem needs,
self-actualization needs. Slide 25, situational
o Motive: internal energizing force that directs a person’s activities toward satisfying or
achieving goals.

Chapter 7

 Categories of business markets slide 3

o Producer: individuals and business orgs that purchase specific kind of product to make
profits for direct use in producing other products or use in daily operations
 Buyers of raw materials
 Purchasers of semi-finished and finished items.
 Broad array of industries
o Reseller: intermediaries that buy finished products and resell them for a profit
 Intermediaries that buy finished goods and resell them for a profit
 No change to physical characteristics of the products
 All products sold to consumer markets are first sold to reseller markets.
 Wholesalers sell products to retailers, producers, governments, institutions
o Government: federal, state, county and local
 Accountable to public
 Result in complex buying procedures
 More than 40% of total gross domestic product
o Institutional: organizations with charitable, educational, community or other
nonbusiness goals
 Different goals
 Fewer resources than other type of organizations
 Marketers may use special efforts to serve them
 Type of business purchases slide 20
o New task purchase: initial purchase of an item to be used to perform a new job or solve
a new problem
o Straight rebuy: purchase of the same products routinely under approximately the same
terms of sale
o Modified rebuy: new-task purchase changed on subsequent orders or when straight
rebuy purchase are modified
 Buying center: group of people within the business organization who make business purchase
decisions
 Roles within the buying center:
o Users: orgs. Members who will actually use the product
 o Influencers: technical personnel who help develop the product
o Buyers: select suppliers and negotiate terms of purchase
o Deciders: choose the products
o Gatekeepers: control the flow of information to and among the different roles in the
buying center
 NAICS: single industry classification system used by US, Canada and Mexico, to generate
comparable statistics among the three partners of NAFTA
o Divides industrial activity in 20 sectors. , slide 40
 No reciprocity, slide 14, situational question
 Slide 19, negotataion,

Chapter 8

 Political, legal, and regulatory forces

o Political: import tariff-extra tax on goods bought outside its borders and brought into
the country.
 Quota: limit on the amount of goods an importing country will accept for certain product
categories in a specific time slide 12, 13 + tariff
 Embargo: government’s suspension of trade in a particular product or with a given country
 SRC: self-reference criterion, unconscious reference to one’s own cultural values, experiences,
and knowledge slide 18
o Cultural relativism: morality varies from one culture to another; business practices are
differently defined as right or wrong by particular cultures
 NAFTA: merged Canada, Mexico, and the US. Slide 24
o Eliminated all tariffs to create a free trade area
o Provides additional opportunities to integrate trade among all nations in western
hemisphere.
o A related trade agreement-Dominican Republic central American trade agreement
 WTO: world trade organization, based in Geneva a global trade association that promotes free
trade among member nations slide 32
o Provide forum for tariff negotiations
o Establish rules to guide international commerce such as dumping-selling products at
unfairly low prices
o Educate individuals, companies and governments about trade rules around the world
 Trading company
o Not involved in manufacturing
o Does not own assets related to manufacturing
o Buy products in one country at the lowest price and sell them to buyers in another
country
 Franchising: a form of licensing just definition
o Company grants a franchisee the right to market its product in return for a
  Financial commitment
 An agreement to conduct business in accordance with the franchiser’s standard
of operations
- Allows franchisers to minimize the risk of international marketing
- Foreign corrupt, slide 17

Chapter 9

 Defining digital marketing develops communication and exchanges with customers through all
digital media slide 4, definition.
 Characteristics of online media, slide 6
o Addressability: marketers’ ability to identify customers before they make a purchase
o Interactivity: customers’ ability to express their needs and wants directly to the firm’s
marketing communications
o accessibility: marketer’s ability to obtain digital information.
o connectivity: consumers’ ability to be connected with marketers along with other
consumers.
o control: customers’ ability to regulate the information they view and the rate and
exposure to that information
 Consumer-generated marketing: slide 10
o trends have caused consumer-generated information to gain importance.
 Use of blogs or digital media by consumers to publish their thoughts, opinions,
reviews, and product discussions.
 Consumers’ tendencies to trust other consumers over corporations.
o Forums help marketers interact with consumers.
 Social network: a web-based meeting place that allows users to create a profile and connect
with others (get acquainted; keep in touch, build a work-related network)
o Marketers use them to: promote products, handle questions and complaints, assist
customers in buying decisions.
o Facebook, twitter, google+
 Blogs: web-based journal where writers can editorialize and interact with other internet users
slide 18, definition
o Give consumers control and can affect the image of a company.
o Used by corporations to
 Answer consumer concerns
 Defend their corporate reputations.

 Phots sharing sites: allow users to upload and share their photos with the world
o Companies: corporate events, and staff and products

Exam question: Facebook is popular among all age groups in the world.

4 P’s